What is a FHA Loan?
An FHA loan is a home loan that is insured by the Federal Housing Administration. That means the bank’s loans are guaranteed, so if you don’t pay the bank will still get paid. Banks more willing to give out these loans than ones with out FHA backing. Another advantage is that FHA loans allow you to buy a home with a down payment as small as 3.5%. In fact, borrowers with low credit scores are more likely to get approved if they apply for an FHA loan than other types of loans. For instance, you can have a credit score as low as 580 and make a 3.5% down payment. Any first time homebuyer or buyer with imperfect credit should contact me today to discuss options.
I’m Karen, your Mortgage Genie, whose helping you find the home of your dreams.